Housing Market and Credit Assessment
Underwriting criteria
Q1 2022
15
Private households
Behavioural score and individual credit assessment are conducted
based on income information, e.g. payslips and tax information
"Before-after loan" household budgets are made and used in the
assessment (based on 30 years annuity and fixed interest rate)
In case of adjustable or floating interest rates, an additional stress
test based on the variable interest rate +1 percentage point is
conducted
If the LTV (loan to value) is > 60 and LTI (loan to income) is > 4, the
customer can only choose:
Corporates, agriculture etc.
•
A financial analysis of the customer is made, including adjustments for
current market conditions
Key ratios and other requirements in Nordea general real estate lending
policy are verified
Rating of the customer according to Nordea's in-house models
An individual valuation is made of the pledged property
Yearly repricing based on reassessment
•
Fixed rate loans and
•
Amortising variable rate, fixed for minimum 5
years
An individual valuation is made of the pledged property
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